(a)
2-YEAR EXTENSION FOR CERTAIN FACILITIES- Section 45(d) (relating to qualified
facilities) is amended--
(1)
by striking `January 1, 2006' each place it appears in paragraphs (1), (2),
(3), (5), (6), and (7) and inserting `January 1, 2008', and
(2)
by striking `January 1, 2006' in paragraph (4) and
inserting `January 1, 2008 (January 1, 2006, in the case of a facility using
solar energy)'.
(b)
Increase in Credit Period- Section 45(b)(4)(B)
(relating to credit period) is amended--
(1)
by inserting `or clause (iii)' after `clause (ii)' in
clause (i), and
(2)
by adding at the end the following:
`(iii)
TERMINATION- Clause (i) shall not apply to any
facility placed in service after the date of the enactment of this clause.'.
(c)
Expansion of Qualified Resources to Certain Hydropower-
(1)
IN GENERAL- Section 45(c)(1) (defining qualified
energy resources) is amended by striking `and' at the end of subparagraph (F),
by striking the period at the end of subparagraph (G) and inserting `, and',
and by adding at the end the following new subparagraph:
`(H)
qualified hydropower production.'.
(2)
CREDIT RATE- Section 45(b)(4)(A) (relating to credit
rate) is amended by striking `or (7)' and inserting `(7), or (9)'.
(3)
DEFINITION OF RESOURCES- Section 45(c) (relating to qualified energy resources
and refined coal) is amended by adding at the end the following new paragraph:
`(8) QUALIFIED
HYDROPOWER PRODUCTION-
`(A) IN
GENERAL- The term `qualified hydropower production' means--
`(i) in the
case of any hydroelectric dam which was placed in service on or before the date
of the enactment of this paragraph, the incremental hydropower production for
the taxable year, and
`(ii) in
the case of any nonhydroelectric dam described in
subparagraph (C), the hydropower production from the facility for the taxable
year.
`(B)
DETERMINATION OF INCREMENTAL HYDROPOWER PRODUCTION-
`(i) IN
GENERAL- For purposes of subparagraph (A), incremental hydropower production
for any taxable year shall be equal to the percentage of average annual
hydropower production at the facility attributable to the efficiency
improvements or additions of capacity placed in service after the date of the
enactment of this paragraph, determined by using the same water flow
information used to determine an historic average annual hydropower production
baseline for such facility. Such percentage and baseline shall be certified by
the Federal Energy Regulatory Commission.
`(ii)
OPERATIONAL CHANGES DISREGARDED- For purposes of clause (i),
the determination of incremental hydropower production shall not be based on
any operational changes at such facility not directly associated with the
efficiency improvements or additions of capacity.
`(C)
NONHYDROELECTRIC DAM- For purposes of subparagraph (A), a facility is described
in this subparagraph if--
`(i) the
facility is licensed by the Federal Energy Regulatory Commission and meets all
other applicable environmental, licensing, and regulatory requirements,
`(ii) the
facility was placed in service before the date of the enactment of this
paragraph and did not produce hydroelectric power on the date of the enactment
of this paragraph, and
`(iii)
turbines or other generating devices are to be added to the facility after such
date to produce hydroelectric power, but only if there is not any enlargement
of the diversion structure, or construction or enlargement of a bypass channel,
or the impoundment or any withholding of any additional water from the natural
stream channel.'.
(4)
FACILITIES- Section 45(d) (relating to qualified facilities) is amended by
adding at the end the following new paragraph:
`(9)
QUALIFIED HYDROPOWER FACILITY- In the case of a facility producing qualified
hydroelectric production described in subsection (c)(8), the term `qualified
facility' means--
`(A)
in the case of any facility producing incremental hydropower production, such
facility but only to the extent of its incremental hydropower production
attributable to efficiency improvements or additions to capacity described in
subsection (c)(8)(B) placed in service after the date of the enactment of this
paragraph and before January 1, 2008, and
`(B) any
other facility placed in service after the date of the enactment of this
paragraph and before January 1, 2008.
`(C)
CREDIT PERIOD- In the case of a qualified facility described in subparagraph
(A), the 10-year period referred to in subsection (a) shall be treated as
beginning on the date the efficiency improvements or additions to capacity are
placed in service.'.
(d)
Indian Coal-
(1)
PRODUCTION FACILITIES- Subsection (e) of section 45 (relating to definitions
and special rules) is amended by adding at the end the
following new paragraph:
`(10)
INDIAN COAL PRODUCTION FACILITIES-
`(A)
DETERMINATION OF CREDIT AMOUNT- In the case of a producer of Indian coal, the
credit determined under this section (without regard to this paragraph) for any
taxable year shall be increased by an amount equal to the applicable dollar
amount per ton of Indian coal--
`(i)
produced by the taxpayer at an Indian coal production facility during the
7-year period beginning on January 1, 2006, and
`(ii)
sold by the taxpayer--
`(I) to
an unrelated person, and
`(II)
during such 7-year period and such taxable year.
`(B)
APPLICABLE DOLLAR AMOUNT-
`(i) IN GENERAL- The term `applicable dollar amount' for any
taxable year beginning in a calendar year means--
`(I)
$1.50 in the case of calendar years 2006 through 2009, and
`(II)
$2.00 in the case of calendar years beginning after 2009.
`(ii)
INFLATION ADJUSTMENT- In the case of any calendar year after 2006, each of the
dollar amounts under clause (i) shall be equal to the
product of such dollar amount and the inflation adjustment factor determined
under paragraph (2)(B) for the calendar year, except that such paragraph shall
be applied by substituting `2005' for `1992'.
`(C)
APPLICATION OF RULES- Rules similar to the rules of the subsection (b)(3) and paragraphs (1), (3), (4), and (5) of this
subsection shall apply for purposes of determining the amount of any increase
under this paragraph.
`(D)
TREATMENT AS SPECIFIED CREDIT- The increase in the credit determined under
subsection (a) by reason of this paragraph with respect to any facility shall
be treated as a specified credit for purposes of section 38(c)(4)(A) during the
4-year period beginning on the later of January 1, 2006, or the date on which
such facility is placed in service by the taxpayer.'.
(2)
RESOURCE- Subsection (c) of section 45 (relating to qualified energy resources
and refined coal), as amended by this Act, is amended by adding at the end the
following new paragraph:
`(9)
INDIAN COAL-
`(A) IN
GENERAL- The term `Indian coal' means coal which is produced from coal reserves
which, on June 14, 2005--
`(i) were
owned by an Indian tribe, or
`(ii)
were held in trust by the
`(B)
INDIAN TRIBE- For purposes of this paragraph, the term `Indian tribe' has the
meaning given such term by section 7871(c)(3)(E)(ii).'.
(3)
INDIAN COAL PRODUCTION FACILITY- Subsection (d) of section 45, as amended by
this Act, is amended by adding at the end the following new paragraph:
`(10)
INDIAN COAL PRODUCTION FACILITY- The term `Indian coal production facility'
means a facility which is placed in service before January 1, 2009.'.
(4)
CONFORMING AMENDMENT- The heading for section 45(c) is amended by striking
`Qualified Energy Resources and Refined Coal' and inserting `Resources'.
(e)
Technical Amendment Related to Trash Combustion Facilities- Section 45(d)(7) (relating to trash combustion facilities) is amended by
adding at the end the following: `Such term shall include a new unit placed in
service in connection with a facility placed in service on or before the date
of the enactment of this paragraph, but only to the extent of the increased
amount of electricity produced at the facility by reason of such new unit.'.
(f)
Additional Technical Amendments Related to Section 710 of the American Jobs
Creation Act of 2004-
(1)
Clause (ii) of section 45(b)(4)(B) is amended by
striking `the date of the enactment of this Act' and inserting `January 1,
2005,'.
(2)
Clause (ii) of section 45(c)(3)(A) is amended by
inserting `or any nonhazardous lignin waste material'
after `cellulosic waste material'.
(3)
Subsection (e) of section 45 is amended by striking paragraph (6).
(4)(A)
Paragraph (9) of section 45(e) is amended to read as follows:
`(9)
COORDINATION WITH CREDIT FOR PRODUCING FUEL FROM A NONCONVENTIONAL SOURCE-
`(A)
IN GENERAL- The term `qualified facility' shall not include any facility which
produces electricity from gas derived from the biodegradation of municipal
solid waste if such biodegradation occurred in a facility (within the meaning
of section 29) the production from which is allowed as a credit under section
29 for the taxable year or any prior taxable year.
`(B)
REFINED COAL FACILITIES- The term `refined coal production facility' shall not
include any facility the production from which is allowed as a credit under
section 29 for the taxable year or any prior taxable year.'.
(B)
Subparagraph (C) of section 45(e)(8) is amended by
striking `and (9)'.
(5)
Subclause (I) of section 168(e)(3)(B)(vi)
is amended to read as follows:
`(I) is
described in subparagraph (A) of section 48(a)(3) (or would be so described if
`solar and wind' were substituted for `solar' in clause (i)
thereof and the last sentence of such section did not apply to such
subparagraph),'.
(6)
Paragraph (4) of section 710(g) of the American Jobs Creation Act of 2004 is
amended by striking `January 1, 2004' and inserting `January 1, 2005'.
(g)
Effective Dates-
(1)
IN GENERAL- Except as provided in paragraph (2), the amendments made by this
section shall take effect of the date of the enactment of this Act.
(2)
TECHNICAL AMENDMENTS- The amendments made by subsections (e) and (f) shall take
effect as if included in the amendments made by section 710 of the American
Jobs Creation Act of 2004.